State holidays and Forex

Associate InstaForex Company invites you to look through the information regarding the influence of holidays on financial flows on the leading financial markets and on Forex in particular.

Nearly all financial grounds of the world operate within a 5-working days week. Only Forex can fairly boast of its operations conducted with no breaks. However, on Saturday and Sunday Forex trades are held for only the major currency pairs and the cover is less global than during the working days. Yet, during the holiday calm on Forex the liquidity rate lowers and the intensity of almost all financial flows weakens which leads to significant reduction of the risks related to loss of capital invested in the market.

Such a drop in business activity is caused by the holidays of the major participants of Forex have - commercial and investment banks. Mainly banks ensure financial saturation of Forex flows and other markets. Forex disregards some holidays, however even such a currency giant can be affected by some of them. There is no doubt that Forex and its participants are true workaholics. It is clear that this market is international and it is accumulated in the Internet and also in the accounts of thousands and millions of market makers, brokers and traders. It turns out that as long as the computer with access to internet is switched on, Forex functions. Still, let us return to the state holidays. Not all the state holidays have significance to make a usual day a holiday, and in most countries at that. It can be New Year, Christmas and Labor Day (every country has its own name for this holiday). But the world does not stop for a second, financial flows do not stop as well, informational reasons do not fail too during holidays. It all is very important for traders especially for those who stakes on the fundamental analysis. During the holiday period the market seems to cease functioning, but this is more like calm before the storm. Just remember how often during the holiday one or another micro or macro economical events take place. Politicians announce another resignation or assignment, heads of companies publish their reports and announce about the merger, another crisis took place in a country of the Middle East, president of transnational company refuses in celebrating holidays. All of this is very important and any market which depends on such news will to it as soon as it opens. And Forex will be the first to do it.